coinedition.com
Another Web3 firm has officially stated that it is battling a liquidity crisis, forcing the company to limit its users’ withdrawal rights. Yesterday on Twitter, Wyre, a global crypto payment platform, announced that it modified its withdrawal policy to allow customers to only cash out below 90% of their assets at a time.
We are modifying our withdrawal policy. While customers will continue to be able to withdraw their funds, at this time, we are limiting withdrawals to no more than 90% of the funds currently in each customer account, subject to current daily limits.
— Wyre 🔊 (@sendwyre) January 7, 2023
Additionally, the firm noted that the 90% limit was subject to each user’s daily limit, noting that it was in the company’s best interest. A part of the press release read:
We are exploring strategic options for our company that will enable us to navigate the current market environment and deliver on our mission to simplify and revolutionize the global payments ecosystem.
The firm also made modifications to its leadership. Its former chief executive officer, Yanni Giannaros, has transitioned to the position of executive chairman. Similarly, Wyre’s former chief risk officer and compliance officer, Stephen Cheng, has become the interim CEO.
In recent months, multiple Web3 companies became bankrupt after the implosion of Terra LUNA projects and the collapse of the former second-largest crypto exchange, FTX.
The LUNA event triggered a wave of insolvency among large crypto firms that previously managed over $10 billion in crypto assets. Celsius Network, Voyager Digital, and Three Arrows Capital were prominent among the bankrupt crypto firms.
Seven months after LUNA, FTX’s parent company filed for chapter 11 bankruptcy protection with over 120 connected firms. Its founder Sam Bankman-Fried was arrested in the Bahamas and was later extradited to the United States.